Page 70 - Introduction to investing in Gold

The Beginner's Guide to Investing in Gold
Key Chapter Takeaways
Think about your overall portfolio; what level of risk are you comfortable with? Although the returns from Junior explorers can be life-changing, they are VERY high risk, and you could lose some, potentially all, of your money.
It makes sense to have a balanced portfolio with some lower-risk producers and perhaps some physical gold as well. Think about being diversified, not just in terms of different mining companies but also different countries (so you’ve also got currency diversification) and less political risk. I like to invest in a diversified portfolio of companies, so if there’s a problem with one of them, there are others in my portfolio that aren’t affected.
Think about having exposure to different commodities; the same principles apply. And remember, explorers are riskier than producers.
Look at the AISC of any miner you’re thinking of investing in. I’m more comfortable if these are significantly below the prevailing price of the commodity. Some people make a decision on just the price of the commodity without factoring in costs – don’t be one of them!
Carry out some of your own research, and don’t rely on “tips”; they probably haven’t used the B.R.I.D.G.E. system. If they have, get answers for each of the components.
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